Question

Find the simple interest. PRINCIPAL RATE OF INTEREST TIME SIMPLE INTEREST 47.000 3 3 months 8 ? The simple interest is S 5 (Simplify your answer. Type a whole number or a decimal. Round to the nearest cent as needed.) Enter your answer in the answer box and then click Check Angus All parts

Answer 1

start by making a conversion from months to years

$3\text{months}\cdot\frac{1\text{year}}{12\text{months}}=\frac{1}{4}\text{year}=0.25\text{year}$

then convert the mixed number into a decimal number for the rate

$7\frac{3}{8}=\frac{8\cdot7+3}{8}=\frac{56+3}{8}=\frac{59}{8}=7.375$

now since this is a percentage it can also be written as

$\frac{7.375}{100}=0.07375$

find the simple interest using the formula

$I=p\cdot r\cdot t$

replace the data

$\begin{gathered} I=47000\cdot0.07375\cdot0.25 \\ I=866.562\approx866.56 \end{gathered}$